2023 Plan of Conservation and Development Committee Meeting #5 Economic Development

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2023 Plan of Conservation and Development Committee Meeting #5 Economic Development
2023 Plan of Conservation and Development
Committee Meeting #5 Economic Development
2/1/22
2023 Plan of Conservation and Development Committee Meeting #5 Economic Development
Agenda
1.   Review economic development trends
2.   Discuss ideas surrounding economic development
3.   Discuss draft online survey
4.   Review draft vision statement
5.   Next steps
2023 Plan of Conservation and Development Committee Meeting #5 Economic Development
Project Schedule
   15 months (concluding by end of 2022)
   Collaboration w/Town & P&Z Commission

                         Community Engagement

   Existing Conditions Assessment

                     AHP           Adoption

                                        POCD Document                 Adoption

                               BTD Zoning        Review

Sept. Oct.   Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.
2023 Plan of Conservation and Development Committee Meeting #5 Economic Development
Regional Context
2023 Plan of Conservation and Development Committee Meeting #5 Economic Development
Regional
Connections
• Berlin is located in the center of the
  state and southern Hartford County. It is
  between Hartford, Waterbury, and New
  Haven (3 of the state’s top 5 most
  populous cities), which are all within 25   10-miles        25-miles
  miles from the town’s center.
• Berlin has strong regional connections.
    • The Hartford Line runs through
        the town, providing direct rail
        service to both Hartford (just 1
        stop away) and New Haven.
    • Amtrak provides connections to
        Boston and New York City.
    • I-91 and I-84 are easily accessible
        via Routes 9 and 5/15.

                                                         Rail
                                                         Interstate
                                                         Open Space
                                                         Water
2023 Plan of Conservation and Development Committee Meeting #5 Economic Development
Regional
Employment
Nodes
Berlin is proximate to a large pool of
workers with excellent rail and highway
access.
• According to Census data:
    • There are approximately 265,000
       primary jobs within a 10-mile
       radius from the center of Berlin.
    • There are over 855,000 jobs
       located within a 25-mile radius of
       the town
• Employment corridors are noticeable
  along the many rail lines and interstate
  highways.
2023 Plan of Conservation and Development Committee Meeting #5 Economic Development
Immediate
Region
• Berlin is within 10 miles
  of Hartford and is home
  to the first train station
  south of Hartford.
• It lies in southern
  Hartford County,
  bordering both New
  Haven and Middlesex
  Counties
• The town is located less                         10-miles
  than 10-miles from the
  Connecticut River and
  between two major
  interstate highways (I-84    Connecticut River
  and I-91)
2023 Plan of Conservation and Development Committee Meeting #5 Economic Development
Labor Force

12,000                                                11,952
                               Berlin’s Labor Force                                                                                     Connecticut River
11,800
                                                               11,650
11,600 11,421
11,400
                                                               11,338
11,200
11,000

Source: CT DOL, October 2021

•   Berlin’s labor force is smaller than most of its neighbors as of October 2021. It is roughly a third the size of both Meriden and New
    Britain’s labor force, its neighbors to the north and south.
•   Berlin is home to roughly 2.5% of Hartford County’s labor force (460,531).
•   The town’s labor force had been rising prior to the pandemic and now sits just below 2010 levels, 600 less than the peak in 2019.
2023 Plan of Conservation and Development Committee Meeting #5 Economic Development
Employment
  Employment Change, 2010 - 2021
                                                                                                                                Berlin
                                                                                                                             Meriden
                                                                                                                Rocky Hill
                                                                                                       Southington
                                                                                    Hartford County
                                                               Connecticut
                                                           New Britain
                                                             Plainville
                                                           Cromwell
                                               Newington
                                   Hartford
                         Middletown
-4.0%                      -3.0%              -2.0%            -1.0%         0.0%             1.0%    2.0%                   3.0%        4.0%
Source: CT DOL, October 2021

  • Berlin has experienced stronger employment growth relative to its neighbors as well as Hartford, Hartford County, and the
    state.
  • Employment in Berlin is now 3% higher than in 2010.
      • While employment within Hartford County has remained relatively unchanged since 2010, it has decreased by 0.3%
        across the state and by 2.2% in the City of Hartford.
2023 Plan of Conservation and Development Committee Meeting #5 Economic Development
Unemployment
16.0%
           14.9%
14.0%                                                                                                                        13.3%

12.0%

10.0%      9.4%
            9.1%                                                                                                                8.1%        9.2% Hartford
 8.0%                                                                                                                             7.9%
            7.8%
                                                                                                                              6.2%
 6.0%                                                                                                                                       5.5% Hartford County
                                                                                                                                            5.3% Connecticut
 4.0%                                                                                                                                       4.3% Berlin

 2.0%

 0.0%
              2010              2011   2012   2013    2014           2015   2016         2017        2018        2019        2020        Oct-21
   Pandemic Recovery: 2019 - 2021 Unemployment Change
3.5%                                                                 3.1%
3.0%                                                          2.6%            •    Berlin’s unemployment has remained well below the City of
2.5%                                                                               Hartford, the county, and the state over the past decade.
                                                       2.0%
2.0%                               1.6% 1.6% 1.7% 1.9%
                         1.3% 1.4%                                            •    The town’s labor force appears to be among the least affected
1.5%      1.0% 1.1% 1.1%                                                           by the pandemic within the immediate region.
1.0%
0.5%                                                                                   • Berlin’s unemployment is just 1.1% higher in October
0.0%                                                                                      2021 than it was in 2019 (pre-pandemic levels).
                                                                                       • Comparatively, the City of Hartford’s unemployment
                                                                                          remains 2.6% higher, New Britain’s is 3.1% higher, and
                                                                                          both the county and state remain 1.6% higher.

 Source: CT DOL, October 2021
Commute Flow
                    Inflow/Outflow of Workers in Berlin (all jobs)
                            Source: US Census Bureau OnTheMap 2019

     11,251                                                                Berlin has a positive job inflow.
Outside residents
                                                                           • More workers come into the town
    work in town
                                                                             for work than leave on a daily basis.

                                     1,105                           8,711
                                                                     residents work
                                     residents work in town
                                                                     outside of town
Jobs to Housing Balance                                                                             Berlin’s jobs to housing ratio is in line with the immediate
                                                                                                     region. The town has a higher ratio than the majority of its
                                                    Cromwell,                                        neighbors, but it is lower than Newington, Rocky Hill and
                                                  Middletown                                         Hartford.
                                                          1.3 Berlin,
                                           Waterbury,
                                             Meriden,
                                                              Greenwich                              Berlin’s ratio lags behind some larger job hubs within the
                                          Southington         1.5                                    state, including Stamford and New Haven, but is ahead of
                                                   1.0          Stamford,                            many others like Waterbury, Bridgeport, Norwalk, and
                                                                Newington                            Danbury.
                                            Bristol,                             Hartford
                                                                1.6
                                         New Britain                  Rocky Hill 2.4
                                                 0.9                  1.9

                                                                    New
                              0         Bridgeport       1         Haven     2                 3                   4                    5                    6
                                               0.8                   1.8
                                                      Norwalk
                                                                Danbury,
                                                          1.2
                                                                Plainville
                                                                1.4
  JOB TO
  HOUSEHOLD
  RATIO
                             Housing Centric Areas                               Balanced                                                    Jobs Centric Areas
                             More workers commuting out of the                   Employment centers with ample                More workers commuting into the area
                             area                                                housing, balance of land uses

Source: US Census 5-yr ACS 2014 - 2019, US Census LEHD 2019
Property Taxes
Tax Rate and Tax Base Trends
Source: CT Data Center, Grand List by Town, Mill Rates, 2011-2020

                                     2020 Share of Real Property                  2011-2020 Change              Berlin has a relatively low tax rate compared to its
                                                                                                                neighbors, which could be an economic development
                    FY 2022                              Commercial/                        Commercial/
                    Mill Rate
                                     Residential
                                                          Industrial
                                                                             Residential
                                                                                             Industrial
                                                                                                                tool to incentivize businesses to choose to locate in the
                                                                                                                town. The town’s tax rate is in line with Plainville, Rocky
Berlin               $33.93             76.6%                21.3%             0.2%            0.2%
                                                                                                                Hill, and Middletown but far lower than Meriden and New
Cromwell             $30.33             75.1%                 24.8%            -3.8%           4.8%             Britain.
Meriden              $40.86             70.2%                 23.9%            -0.1%           -1.2%
                                                                                                                While Berlin’s share of commercial and industrial
Middletown           $35.70             61.1%                 28.7%            -9.1%           11.5%            property was not as high as some of its neighbors in
New Britain          $49.50             69.4%                 18.5%            -3.5%           1.7%             2020, recent development activity suggests this number
                                                                                                                will rise in the future, which could help reduce the tax
Newington            $38.81             71.7%                 24.1%            -1.8%           1.6%
                                                                                                                burden on residents.
Plainville           $34.56             69.9%                 26.2%            -0.7%           1.3%
Rocky Hill           $34.10             63.1%                 28.6%            -5.9%           2.6%
Southington          $29.03             82.2%                 14.9%             0.1%           0.1%

Mill
Rates
                       $30                                             $40                                $50
Property Taxes
                                 2021 Berlin Property Tax Base by Assessed Value
• The Town’s 2021 total
                                              Industrial
  assessed value of real                                                 Utilities
                                                6.51%
  property was $2.1 billion                                               0.17%
                                     Commercial
                                       18.93%

                              Forest & Open
                                  Space
                                  0.02%

                                      Farm
                                      0.02%
                                                                                       Residential
                                                                                        69.89%
                                     Vacant
                                     4.45%
                                                     Source: Town of Berlin Assessor
Regional Considerations & Questions

 • Berlin’s labor force demonstrated strong resiliency relative to neighboring communities
   throughout the pandemic. How do we continue to successfully grow back lost jobs due
   to Covid?

 • Berlin demonstrates a healthy jobs to household balance and inflow/outflow of workers.
   How can the town maintain this balance while growing the economy?

 • Is Berlin well positioned within the region to attract future employers? What assets
   should we focus on for future growth?
Local Context -
Employment
Employment Nodes

  Higher concentrations of
  employment are visible
  along the Berlin Turnpike,
  Route 9, and Farmington
  Ave. corridors.
All Businesses
According to the town’s business list, prepared by the Economic
Development Department, the strongest commercial corridor is clearly
along Farmington Ave., which boasts the highest concentration of
businesses in town. This is where most restaurant and retail businesses
are located. The Berlin Turnpike is also an active, more auto-focused,
retail corridor that is also home to some larger businesses.

    Types of Businesses
    Source: Town of Berlin Economic Development Department, Business
    List, 2021

                                        Businesse
     Type                                               Share
                                            s
     Industrial                            95           18.2%
     Construction/Home Services            66           12.6%
     Personal Services                     58           11.1%
     Health Care                           57           10.9%
     Retail                                52           10.0%
     Restaurant/Coffee
                                           47            9.0%
     Shop/Brewery
     Professional Services                 40            7.7%
     Auto Related                          35            6.7%
     Other                                 29            5.6%
     Recreational                          25            4.8%
     Agriculture                           11            2.1%
     Bank                                   7            1.3%
                                Total     522           100%
Top 10 Employers
    Top Employers
    Source: Town of Berlin Economic Development Department, 2021
                                                                              Share of
         Company                 Industry                          Employees   Town
                                                                             Employment
         Eversource (formerly
     1                        Electric Power Generation              1,200     11.62%
         Northeast Utilities)
     2 Town of Berlin            Government                          688       6.66%
     3 Assa Abloy         Hardware Manufacturing                     410       3.97%
       EuroAmerican Home
     4                    Home Health Care Services                  287       2.78%
       Care
       Comcast Cable/TCI, Cable and Other
     5                                                               274       2.65%
       CT                 Subscription Programming
                          Industrial & Commercial
     6 TOMZ Corporation                                              251       2.43%
                          Machinery & Equipment Mfg
     7 Keep Me Home        Pet Supplies Stores                       250       2.42%
       Budney Overhaul and Appliance Repair and
     8                                                               180       1.74%
       Repair              Maintenance
     9 Parker Fluid Control Instrument Manufacturing                 157       1.52%
    10 Stop & Shop               Grocery Stores                      137       1.33%
                                                                    3,834     37.14%

•     Most of the town’s top employers are located along the Berlin Turnpike.
•     The top 10 employers contribute to 37% of Berlin’s overall workforce.

•     The town is the second leading employer, behind Eversource.
         • Approximately 65% of the town’s employees are unionized Board of
             Education employees. 27% are unionized general government employees.
             The remaining 8% are non-union employees.
Employment by                                                 Berlin’s Total Employment by Industry
                                                                                Source: EMSI, 2021

Industry
                                                                                                             2021       %
                                                NAICS    Description
                                                                                                             Jobs     Share
                                                31      Manufacturing                                        1,992     19%
                                                62      Health Care and Social Assistance                    1,401     14%

  Manufacturing is the largest industry         44      Retail Trade                                         1,325     13%
                                                90      Government                                           1,255     12%
  in Berlin, accounting for 19% of the
                                                48      Transportation and Warehousing                        753      7%
  City’s jobs in 2021                           23      Construction                                          695      7%
  • Industrial uses are clearly important to    54      Professional, Scientific, and Technical Services      521      5%
    Berlin’s economy, as the Manufacturing,     42      Wholesale Trade                                       504      5%
    Transportation & Warehousing,               81      Other Services (except Public Administration)         420      4%
    Construction, and Wholesale Trade           72      Accommodation and Food Services                       286      3%
    industries are all among the town’s top 8   22      Utilities                                             258      2%
                                                        Administrative and Support and Waste
    industries by employment in 2021.           56      Management and Remediation Services                   240      2%
       • All industries that encompass          71      Arts, Entertainment, and Recreation                   223      2%
          heavy commercial and industrial       52      Finance and Insurance                                 181      2%
          use businesses.                       51      Information                                           116      1%
                                                61      Educational Services                                  82       1%
                                                53      Real Estate and Rental and Leasing                    80       1%
                                                11      Agriculture, Forestry, Fishing and Hunting            41
Resident vs
Town                                                                                                                                                       Berlin Resident Jobs    Jobs in Berlin
                                                               NAICS       Description                                                                       Jobs        Share    Jobs         Share
Workforce                                                       11        Agriculture, Forestry, Fishing and Hunting                                           10         0.1%      8           0.1%
                                                                21        Mining, Quarrying, and Oil and Gas Extraction                                         2         0.0%      0           0.0%
The town is home to a higher share of                           22        Utilities                                                                            51         0.6%     20           0.2%
workers in industries that cater to heavy
                                                                23        Construction                                                                        448         4.9%     667          5.8%
commercial and industrial activity.
                                                                31        Manufacturing                                                                      1,148       12.5%    2,487        21.7%
•      Manufacturing: 12.5% of residents                        42        Wholesale Trade                                                                     418         4.6%     588          5.1%
       work in this industry; 21.7% of Berlin
       jobs were in this industry in 2019.                      44        Retail Trade                                                                        844         9.2%    1,042         9.1%
                                                                48        Transportation and Warehousing                                                      230         2.5%     603          5.3%
•      Transportation & Warehousing: 2.5%                       51        Information                                                                         210         2.3%     529          4.6%
       of residents work in this industry                       52        Finance and Insurance                                                               718         7.8%     265          2.3%
       compared to 5.3% of Berlin jobs.
                                                                53        Real Estate and Rental and Leasing                                                   86         0.9%     51           0.4%
•      Wholesale Trade: 4.6% of residents
       work in this industry compared to 5.1%                     54      Professional, Scientific, and Technical Services                                    612        6.7%      480          4.2%
       of Berlin jobs.                                            55      Management of Companies and Enterprises                                             250        2.7%     1,513        13.2%
                                                                          Administration & Support, Waste Management
The town’s workforce significantly lags                                                                                                                       386        4.2%      483          4.2%
the resident workforce in two typically                           56      and Remediation
high-paying white-collar industries:                              61      Educational Services                                                                943        10.3%     236          2.1%
                                                                  62      Health Care and Social Assistance                                                  1,378       15.1%    1,249        10.9%
•      Finance & Insurance                                                                                                                                                         116          1.0%
                                                                  71      Arts, Entertainment, and Recreation                                                 140         1.5%
•      Professional, Scientific, & Technical                      72      Accommodation and Food Services                                                     493         5.4%     537          4.7%
       Services                                                           Other Services (excluding Public
                                                                                                                                                              291        3.2%      407          3.5%
                                                                  81      Administration)
The town’s workforce significantly lags                                                                                                                      496         5.4%      186         1.6%
the resident workforce in the Educational                         90      Public Administration
Services and Health Care industries as                            11      Agriculture, Forestry, Fishing and Hunting                                          10         0.1%        8         0.1%
well.                                                                                                                                                       9,154        100%     11,467       100%

    Source: US Census LEHD, 2019
    * Note that these town-wide industry totals differ from the previous page. This data is from a different source and is from 2019 (the most recent LEHD data).
Where
Residents Work
 Town                 # Jobs   % Share
Hartford              1,076     11.8%
Berlin                1,021     11.2%
New Britain            719       7.9%
Farmington             512       5.6%
Newington              458       5.0%
Middletown             341       3.7%
Meriden                332       3.6%
East Hartford          295       3.2%
West Hartford          293       3.2%
Rocky Hill             287       3.1%
All other locations   3,820     41.7%
                      9,154    100.0%

Most Berlin residents have short
commutes to their primary job.
• Over half of working residents
  commute less than 10 miles
  to work (56%), with the
  highest concentration of
  resident jobs to the north in
  Hartford and the towns in
  between.
10 Industries were growing in Berlin prior to
Berlin’s Employment Change                                                                                 the pandemic. 2 have grown since 2019.
Source: EMSI, 2011-2021
                                                           2011 Jobs                 Annual % Growth       •   Manufacturing remains the town’s leading industry
                                                           2019 Jobs               Pre-Pandemic   2019-        by a wide margin
                                                           2021 Jobs                2011-2019     2021     •   Growth in the Transportation & Warehousing
  11 - Agriculture, Forestry, Fishing & Hunting                                       -5.0%       -0.6%        industry has intensified since the start of the
                                                                                                               pandemic, which comes as no surprise with the
          53 - Real Estate & Rental & Leasing                                         +1.3%       -9.0%        continued national rise in ecommerce activity.
                          61 - Educational Svcs                                       -0.8%       -2.9%    •   The Retail industry appears to have recovered from
                                                                                                               the economic effects of the pandemic much faster
                     52 - Finance & Insurance                                         +2.2%       -0.4%        than the Accommodation & Food Services industry
                                                                                                               (down 3.6% and 21.7% per year respectively).
                               51 - Information                                       -5.8%       -17.2%
                                                                                                           •   Finance & Insurance and Professional, Scientific &
        71 - Arts, Entertainment, & Recreation                                        +1.3%       -15.2%       Technical Services jobs were increasing at a
                                                                                                               healthy rate prior to the pandemic (2.2% and 3.6%
       56 - Administrative & Support & Waste…                                         -1.2%       -3.9%        annually).
                                   22 - Utilities                                     -4.2%       +5.2%           •   These are typically higher paying white
                                                                                                                      collar jobs
          48 - Transportation & Warehousing                                           +6.8%       +9.4%
                                                                                                                  •   Professional, Scientific & Technical Services
54 - Professional, Scientific, & Technical Svcs                                       +3.6%       -1.0%               was the second fastest growing industry in
                                                                                                                      Berlin from 2011 to 2019, behind only
           72 - Accommodation & Food Svcs                                             +0.7%       -21.7%              Transportation & Warehousing. It is now the
   81 - Other Services (except Public Admin)
                                                                                                                      7th largest industry in Berlin.
                                                                                      +2.6%       -14.4%
                          42 - Wholesale Trade                                        -0.7%       -6.9%          Total Employment Change
                                                                                                                 11,500                11,332
                              23 - Construction                                       +1.4%       -3.3%
                                                                                                                           10,929
                                                                                                                 11,000
                              90 - Government                                         -0.3%       -1.3%
                                                                                                                 10,500                            10,371
                               44 - Retail Trade                                      +0.7%       -3.6%
                                                                                                                 10,000
         62 - Health Care & Social Assistance                                         -0.4%       -4.5%
                                                                                                                  9,500
                            31 - Manufacturing                                        +0.1%       -4.4%                     2011        2019        2021

                                                    0   1,000      2,000   3,000
Location Quotient (Berlin in relation to Hartford County)
Source: RKG Associates, EMSI, 2011-2021
A location quotient is a metric used to highlight a local economy’s strengths and
                                                                                                                              A number of Berlin’s industries are clear leaders within Hartford
weaknesses in comparison to a larger economic region.                                                                         County, including Arts & Entertainment, Manufacturing, Retail,
                                                                                                                              Construction, and Transportation & Warehousing. Berlin’s
        < 0.8 indicates an under-represented within an industry.
                                                                                                                              Professional, Scientific & Technical Services and Finance &
        0.8 -1.2 indicates employment is in line with the larger region.                                                      Insurance industries are also emerging, with strong growth over
        > 1.2 indicates specialization for the area within the region.                                                        the past decade and increasing location quotients. The town can
                                                                                                                              continue to foster these industries to bring more high paying jobs
Size of circle represents relative 2021 employment                                                                            into town and create a specialization within the region.
                                                                    Arts, Entertainment
                                                                                   & Rec
                                                                            2.40                2.40
                                                                                                                                                                                           Strong and
                Strong but
                Declining                                                                       2.20
                                                                                                                              Construction                                                 Advancing
                                                        2.23                  Manufacturing
                                                      Agriculture                               2.00            2.03

                                                                                                1.80
                                                                                            1.74
                                                               Wholesale Trade                                                                                            Transportation
                                                                                                1.60                        Retail Trade                                  & Warehousing     1.58
                                                                               1.49                1.48                                                                       LQ up from
                                                                                          1.41 1.40                                                                         1.20 in 2011
                                                                                 Other
                                                                                                1.20
                                                                               Services
                                                                                                1.00
                                                                     Health Care
                                                                                        0.80   0.80
                                                                                                                                                0.77   Professional, Scientific &
                    Information           Accommodation                                    0.68

                                                                                                        Location Quotient
                                                                                                                                                       Technical Services
                   0.63                   & Food Svcs                                           0.60
                                                                         Admin &                                                                       LQ up from 0.67 in 2011
                                                       0.52                                 Real Estate
                                                                         Support 0.47
                                                                                                0.40
                Weak and                                                                0.38                                               Finance & Insurance
                                                                                                                                                                                            Weak but
                                                                                   Educational 0.20
                Declining                                                           Services
                                                                                                                                    0.17 LQ up from 0.12 in                                 Emerging
                                                                                                0.00
                                                                                                                                         2011
          -8%                   -6%                    -4%                   -2%                       0%                                  2%                     4%                  6%                8%
                                                                                      2010 – 2021 Annual Growth
Top Employment
Sectors                                                      Berlin’s Top 10 Industry Sectors (6-digit NAICS)
                                                                                      Source: EMSI, 2021

                                                                                                                 2021 2011 - 2021
                                                 NAICS     Description
 3 of the top 10 6-digit industry sectors                                                                        Jobs % Change
 in Berlin are Manufacturing related.            623110   Nursing Care Facilities (Skilled Nursing Facilities)    809    -24.5%
                                                 493110   General Warehousing and Storage                         611    124.3%
 • Skilled nursing care facilities rank as the
   top industry sector in town, employing        902999   State Government, Excluding Education and Hospitals     527     -4.5%
   over 800 people.                              903611   Elementary and Secondary Schools (Local Government)     369     -3.7%
      • This encompasses 58% of Berlin’s         333517   Machine Tool Manufacturing                              307     -9.9%
         healthcare jobs.                        333613
                                                          Mechanical Power Transmission Equipment
                                                                                                                  292     24.4%
                                                          Manufacturing
 • The top 3 Manufacturing sectors               903999   Local Government, Excluding Education and Hospitals     271     -9.1%
   (machine tool, mechanical power               722511   Full-Service Restaurants                                228    -28.9%
   transmission equipment, and machine           332710   Machine Shops                                           221     29.8%
   shops) combine to employ 820 people,                   Supermarkets and Other Grocery (except Convenience)
   representing 41% of the industry              445110                                                           187     -8.1%
                                                          Stores
   employment.
Employment Sector Growth
                                                               Berlin’s Top 10 Growth Sectors (6-digit NAICS)
                                                                                  Source: EMSI, 2011-2021
400
            338
350

300

250

200

150
                              82               80               72
100                                                                               58                 57              51                45                41
 50
                                                                                                                                                                           35
  0

      493110 - General    541512 -     452319 - All Other     621493 -      221122 - Electric     333613 -     332710 - Machine 221112 - Fossil       325412 -    333511 - Industrial
      Warehousing and Computer Systems     General          Freestanding   Power Distribution Mechanical Power      Shops      Fuel Electric Power Pharmaceutical      Mold
          Storage      Design Services   Merchandise         Ambulatory                        Transmission                        Generation       Preparation     Manufacturing
                                            Stores          Surgical and                         Equipment                                         Manufacturing
                                                             Emergency                         Manufacturing
                                                               Centers

      • The general warehousing and storage sector has experienced significant growth in Berlin, adding 338 jobs since 2011, more than
        4 times the amount seen in the next leading growth sector.
            • This sector is the reason for the Transportation & Warehousing industry’s strong continued growth over the past decade,
              accounting for 89% of the industry’s 381 net new jobs since 2011.
            • It has helped the industry rise from employing 372 people in Berlin in 2011, to 753 today. It is now the town’s 5th leading
              industry.
      • The computer systems design services sector is the second fastest growing industry sector, adding 82 jobs since 2011. This is
        boosting the Professional, Scientific & Technical Services industry growth within Berlin.
      • 4 of the top 10 growth sectors are in Manufacturing, including the highly specialized and high-paying pharmaceutical preparation
        manufacturing sector, which serves New England’s growing Life Sciences industry cluster .
Local Context –
Development Patterns
Commercial &
Industrial Zoning
• Berlin’s Commercial districts are focused
  around the Farmington Ave. corridor and the
  Berlin Turnpike.
• The industrial zones are primarily in the
  northeastern section of town, with a few
  running along the rail line and surrounding
  the commercial districts along the southern
  portion of the Berlin Turnpike.

New Development Opportunities
3 categories:
              - Targeted Economic Development areas
               (supporting development where existing
               infrastructure and systems are already in
               place.)
              - Vacant Land (limited supply and existing
                constraints)
              - Redevelopment of existing older Commercial
                & Industrial properties

Gaps with what the market demands and what zoning currently
allows will be examined at a later stage of the POCD.
Commercial &
Industrial Inventory
Details by Land Use
Source: Town of Berlin Parcel Database, RKG Associates

COMMERCIAL
                                       Total Assessed                          Property     Taxes/
                  Parcels      Acres                  AV/Parcel      AV/acre
                                           Value                                Taxes       parcel
Office            86            168    $133,463,290      $1,551,899 $796,685 $4,528,409    $52,656
Retail            81            141    $98,379,736       $1,214,565 $698,564 $3,338,024    $41,210
Restaurant/bar 45               24     $23,091,042       $513,134   $980,522 $783,479      $17,411
Hotel/Motel       13            23     $9,233,700        $710,285   $398,275 $313,299      $24,100
Other             175           614    $110,203,945      $629,737   $179,504 $3,739,220    $21,367
                  400           969 $374,371,713         $935,929   $386,339 $12,702,432   $31,756

INDUSTRIAL
Industrial        268          1,204 $228,807,790        $853,760   $190,022 $7,763,448    $28,968

*These totals represent the current land uses within Berlin, as designated by the
town’s assessor. They do not represent the zoning.

*Actual built space (square footage) not available
Top 10 Taxpayers
Principal Taxpayers                                                                          Rocky River Realty Co. Land
Source: Town of Berlin Assessors Office, Based on 2019 Grand List                            Source: Town of Berlin Assessors Office

                                                            Taxable    Percent of Town’s
              Taxpayer                                     Assessed    Taxable Assessed
                                                           Valuation       Valuation

      1       Rocky River Realty Co.                    $217,066,038        9.15%
      2       Corbin Russwin Inc.                        $27,297,870        1.15%
      3       Tomz Corporation                           $20,976,520        0.88%
      4       Cedar Brickyard                            $17,076,850        0.72%
      5       B & F Machine Inc.                         $14,214,980        0.60%
      6       Stonebridge Berlin Assoc.                   $9,363,400        0.39%
      7       Budney Industries Inc.                      $8,917,435        0.38%
              Connecticut Natural Gas
      8                                                   $8,650,160        0.36%
              Corp.
      9       Budney Overhaul                             $8,494,970        0.36%
              224 Berlin Turnpike LLC (incl.
     10                                                   $7,711,490        0.33%
              Acura of Berlin)
                                                        $339,769,713        14.33%

•   The top 10 taxpayers contribute to 14% of Berlin’s overall taxable property, according to the town’s assessors office.
       • Rocky River Realty Company, Berlin’s top taxpayer, accounts for 9% alone.
       • They own 6 parcels and 144.5 acres of land in town, with 5 of them clustered in the northeastern corner of Berlin.
       • Their largest land holding is a 114-acre parcel valued at $90,000,000. It is the home of Eversource’s regional headquarters and
          several other large commercial/industrial buildings.
Commercial & Industrial
Building Stock

                             Units by Year Built
                Source: Town of Berlin Parcel Database, RKG Associates

                          Commercial                          Industrial
                      Parcel                           Parcel
   Year Built                       % of Total                       % of Total
                      Count                            Count
  Pre 1930              51              13%               5                2%
  1931 – 1959           82              21%              41              15%
  1960 – 1979           68              17%              54              20%
  1980 – 1999           71              18%              53              20%
  Since 2000            38              10%              26              10%
  N/A                   90              23%              89              33%

28% and 30% of Berlin’s built commercial and
industrial stock respectively were built since 1980.
Industrial Market
                                                                                                                                         Connecticut/Western Massachusetts
Connecticut’s industrial market has remained strong throughout the pandemic, in
large part because of the continued strength of e-commerce and its reliance on                                                           Industrial Market
                                                                                                                                         Source: Newmark Q4 2020 Industrial Market Report
large industrial distribution and warehousing facilities.
•    Prices of available industrial spaces within Berlin range from $2 to $8 on Loopnet, an online
     commercial listings website. $6/sf appears to be achievable within the Berlin industrial
     market, with several current listings at this price.
•    Over the next 12 months, Newmark projects statewide inventory to increase, vacancy to
     decrease, absorption to increase, and construction activity to increase.

Hartford-West Hartford-East Hartford Industrial Market
Source: National Association of Realtors, Q1 2021 Commercial Real Estate Metro Market Report
    Total Inventory    New Leasing Volume        Under Construction      Vacancy      Asking Rent    Net Absorption
          (SF)                (SF)                      (SF)               Rate         ($/SF)            (SF)
      94,500,000             1,620,000                 800,000             4.7%          $5.50            (260,000)

Regional Market Activity
Source: Newmark Q4 2020 Industrial Market Report

Build-to-Suite                                                                                   Leases

Enfield:           Agri-Mark; 266K SF food-grade building; 2021                                  Windsor:         Amazon; 170K SF

Plainville:        Ahold Delhaize; 250K SF multi-story freezer building; mid 2022                Orange:          Amazon; 138K SF
                                                                                                                  Amazon; 129K SF
Windsor:           Amazon; 1M+ SF multi-story distribution center; 2021
                                                                                                 Bloomfield:      Home Depot; 449K SF
South Windsor: Amazon; 182K SF building; 2021
                                                                                                 Waterbury:       Drew Marine; 105K SF
East Windsor:      Parksite; 150K SF building; 2021
                                                                                                 Putnam:          Turning Point Energy; 65K SF
Commercial Market                                                                                             REIS Hartford Submarket: Office

Office
Source: REIS 2000 – 2020, Hartford Submarket
$30                                                                                                     30%
                                                                                              $24.5
$25                                                                                                     25%
                                                                                                 $19.7
$20                                                                                               18.2% 20%
$15                                                                                               17.9% 15%

$10                                                                                                     10%
$5                                                                                                      5%
$0                                                                                                      0%
      2000    2002      2004      2006         2008   2010   2012    2014     2016    2018     2020
                 Class A                 Class B&C
                                                                                                              REIS Hartford Submarket: Retail

 Retail
 Source: REIS 2000 – 2020, Hartford Submarket

$20                                                                                          $18.8     12%
                                                                                                 11.1%
                                                                                                       10%
$15
                                                                                                      8%
$10                                                                                                   6%
                                                                                                      4%
 $5
                                                                                                      2%
 $0                                                                                                   0%
      2000     2002     2004      2006     2008       2010   2012   2014     2016    2018    2020

                                           Asking Rent        Vacancy Rate
Local Considerations & Questions

 • What industries and jobs should Berlin focus on growing?

 • Should the town focus on attracting more businesses to reduce the tax burden on
   residents?

 • What does Berlin’s future economy look like? Understanding the important role
   manufacturing and other industrial industries have played in Berlin’s economy, do we
   want to preserve industrial properties?

 • Is the aging of the workforce a concern for the local economy if most Berlin employees
   by place of residence are coming from elsewhere and most Berlin residents work
   elsewhere?
Recent Successes
Economic Development Organizations
• Berlin Economic Development Commission
    • 7 town-elected members

• Greater New Britain Chamber of Commerce
• MetroHartford Alliance
         • The MetroHartford Alliance is an investor-based economic development partnership focused on business development
           and growth, retaining and attracting jobs and talent in targeted sectors, ensuring a strong urban core, and promoting the
           Hartford Region.
    • Hartford Chamber of Commerce
         • A MetroHartford Alliance initiative: A membership organization committed to enhancing Hartford’s business and civic
           communities .
    • HYPE
         • A MetroHartford Alliance initiative: HYPE was created in 2006 as a young professionals networking group to attract and
           retain talented individuals and successful businesses in the Hartford Region.
    • Innovation Destination Hartford
         • A MetroHartford Alliance initiative: An information hub for Connecticut-based entrepreneurs, startups, small business
           owners, and professionals. The initiative is dedicated to facilitating connections within our entrepreneurial community
           and supporting startups and second-stage companies throughout the Hartford Region.
Business Development Activity

                          2018 & 2019:                                    2020 & 2021:
                          •   306 new jobs added                          •   294 new jobs added
                                 •   12 new businesses                           •   27 new businesses
                                 •   7 business relocations into Berlin          •   1 business relocation into Berlin
                                 •   2 mixed-use developments started            •   1 redevelopment
Source: Town of Berlin,
as of November 2021              •   9 business expansions                       •   15 business expansions
Business Development Activity
• Berlin’s business development         Business Starts and Stops
  activity (as measured by starts
  and stops) tracks closely with
  Wethersfield and Rocky Hill.
• Activity is higher in Southington,
  which also has nearly twice as
  many businesses.

         Town        Total Businesses
         Berlin           2,979
      Wethersfield        3,011
      Newington           3,510
      Southington         5,548           Source: CT Business / CT Data Center
       Rocky Hill         2,952
Targeted Economic Development Sites (TEDS)

• The 2003 POCD created a Targeted Economic Development Site (TEDS)-based plan for
  specific parcels
• The intention was to encourage development in places that best serve public interest,
  while protecting health and safety.
• Supporting development where infrastructure and systems are already in place, rather
  than greenfields development, especially in Berlin’s many areas with environmental
  constraints such as wetlands, floodplain and excessive slope, the Town seeks to support
  “Responsible Growth” and “Sustainable Communities.”
• The town currently has 13 TED sites, although many of these sites in limited in their
  development feasibility due to environmental constraints such as wetlands and steep
  slopes.
Targeted Economic
Development Sites (Progress)
1:   Significant wetland and floodplain area. One of the 2 areas with potential for
     development is under contract for sale to Clean Earth with plans for an
     industrial park. The other area has seen building improvements over the years
     with approvals in place for a limited amount of additional development.

2:   Major successes here. There has been significant development in this area,
     including the start of the Steele Center project by Newport Realty (discussed
     later). Many new businesses have located here, streetscape projects have
     been completed, and Deming Park was redeveloped

3:   TOMZ Corporation acquired additional land and has expanded its buildings.
     Solar arrays were constructed.

4:   Land has been assembled. Redevelopment underway at intersection of Berlin
     Turnpike and Deming Road. Mixed use Turnpike Ridge project is under
     development.

5:   Two projects in regulatory review process at same intersection (404 Berlin
     Turnpike and 550-554 Berlin Turnpike). Will include a total of 306 mixed
     income apartments, a hotel, and convenience store.
Targeted Economic
Development Sites (Progress)
 6:   Deming Ridge project (Metro Realty) approved here (88 mixed income units,
      expected to start Spring 2022).

 7:   Biopellet, a manufacturing company, located and expanded a facility in this
      area.

 8:   No change

 9:   A small buildings sales company located here.

10:   Southernmost parcel has (2) new contractor shop buildings for several
      tenants being constructed. (Priority Electric)
11:   No change

12:   No change

13:   Stick Village development almost complete (4 of 5 buildings complete). The
      majority of commercial spaces have been successfully leased. Tasca Ford
      has renovated its dealership and received approval to construct a new
      dealership building. OSJ (Ocean State) has renovated old plaza, relocated
      their own store within plaza and tenant spaces are filling - new
      amusement/restaurant use.
Vacant Land and Applications Pending

  • The Town has multiple vacant
    parcels, many of which
    comprise TED sites.
  • Applications are pending at
    several of those parcels.
  • As with the TED sites,
    development feasibility is
    limited by environmental
    constraints at many of these
    parcels.
Local Efforts
• Kensington Village
    • Large TOD plan surrounding downtown Berlin’s train
       station, with development efforts lead by Newport Realty
       Group (headquartered in Southington).
          • Made possible by a partnership with the State of
             Connecticut.
    • Promises new business and revitalization at 861, 889, 903
       and 913 Farmington Ave.
    • First project (the “Steele Center”) has a development
       program including:
                •   $15 million mixed-use project
                •   76 market rate apartments
                •   19,000 SF of commercial space
                        • 10,000+ SF medical office space
                        • 8,000+ SF retail space
                •   All organized into 5 buildings
         • Unanimously approved in September 2019
         • Public voted on the name of the project in October
            2019
         • Construction broke ground in late 2020
     • Proposed development of a boulevard connecting the
       development to the Berlin Train Station.
                                                                  Kensington Village TOD.
                                                                  Source: CivicMoxie.com
Local Efforts
Other development projects:
      • Turnpike Ridge
           • 220 Berlin Turnpike, near Deming Road
           • $13 million mixed-use project
           • Development program includes:
                •   72 market rate apartments
                •   18,000 SF restaurant and retail space
                •   4 new buildings planned; 1 commercial
                    building and 3 apartment buildings
         • Construction broke ground in August 2020
     • Newport Center
         • A development by Newport Realty Group at
           848 Farmington Ave.
                •   A 3-story 24,000 SF mixed-use building with
                    lower level commercial and upper story
                    residential.
                •   Now fully leased (commercial space was
                    listed at $15/SF NNN)
                •   This is a success story because the space
                    had been long vacant before being             Turnpike Ridge construction
                    acquired.                                     Source: Hartfordbusiness.com
Local Efforts
Tax Abatement Program:
     • The town adopted a tax abatement program based upon improvements which will increase the
       value of a property. This is intended to attract developers to build larger projects in Berlin. The
       program has been revised over the years as market conditions have changed.
     • Under the current program:
          • Projects must involve either:
               • Manufacturing
               • Office
               • Warehouse/distribution
               • Information technology
               • New retail developments
               • Restaurants
               • Recreation.
          • Tax abatements are offered from 3 to 10 years, dependent upon the level of investment
            within a project.
Local Efforts
Building Façade Improvement Matching Grant Program:
      • An economic development incentive program
        offered to applicants who own or lease eligible
        property located within strategic development areas.
      • Up to a 50% match
           • up to $50,000 for façade improvements
           • Up to $1,500 for signage.
      • Program ended 12/31/21

47 façade improvement projects have been completed
or were in process as of March 2021. They are all
located along the Farmington Ave. commercial
corridor, with the largest concentration in Kensington
Village near the train station.
                                                               Façade improvement projects under the current program
                                                               Source: Town of Berlin, as of March 2021
2021 Ribbon Cuttings and Groundbreakings
  DATE                  Firm                        Location            Description                         Notes                         Investement   New Jobs
  Ja n-21            The Pho Bar              224 Berl in Turnpike     New Business                       Res taurant                                     5
                                              146 Webster Square
  Feb-21                 Ba rbology                                    New Business
                                                      Roa d                                            Ba rber Shop                                        1
  Ma r-21             Cuts of Wood             201 Chri s tian Lane     Expa nsion               Showroom - Wood Products
                                              33 Webster Square
  Ma r-21             Bra s s City Ti le                               New Business
                                                      Roa d                                           Showroom - Ti le                                     2
  Ma r-21          Sa m's Food Stores         301 Berl in Turnpike  Expa nsion/Remodel             Conv. Store/gas station                                 3
  Ma r-21      Steele Center - Building 1      9 Steele Boulevard      TOD PROJECT                                                        $4,750,000
  Apr-21      Cl utch Ca rds & Collectibles 848 Fa rmington Avenue     New Business                      Col l ectibles                                    1
  Apr-21               Na ti onal Sign         780 Four Rod Road        Expa nsion               23,000 s quare foot addition             $1,600,000      12
  Apr-21           Avenue Restaurant        958 Fa rmington Avenue      Expa nsion           Addi tion and handicapped entrance            $400,000        3
  Apr-21           Budney Industries           40 New Pa rk Drive       Expa nsion              10,000 s quare foot expansion              $750,000       15
  Apr-21                    TOMZ               47 Epi scopal Road       Expa nsion              57,000 s quare foot expansion
  Apr-21    Douglas Mech - Sheet Metal Div 816 Four Rod Road            Expa nsion         Expa nded into adjacent industrial condo                        5
  Apr-21        Murphy Roa d Recycling         655 Chri s tian Lane      Expa nson              30,000 s quare foot expansion             $25,000,000     15
                                                1244 Fa rmington
  Apr-21
                           Pri s tus                 Avenue            New Business      Opened children's clothing & a ccessory s tore                    2
  Ma y-21          Wel lness Collective      314 New Bri tain Road     New Business                       Opened                                           8
  Ma y-21                   LAVA            892 Fa rmington Avenue     New Business                    Opened salon                                        5
                                                1204 Fa rmington
  Ma y-21
                   Home & Ha rmony                   Avenue            New Business           Opened home décor a nd gi ft s hop                           1
  Jun-21               Pi cture Show            19 Fronta ge Road       Reopening                Reopened movi e theatre
                                              119 Webster Square
  Jun-21
                         P & P Na i l                 Roa d            New Business                   Opened nail salon                                    3
                                                1244 Fa rmington
  Jul -21
                   Pa ra dise Nutrition              Avenue            New Business              Opened healthy s hake shop                                1
  Sep-21    Northeast Peformance Institute 1400 Berl in Turnpike       New Business             Opened headquarters i n Berlin                             3
  Sep-21          Bungalow on the Ave       945 Fa rmington Avenue     New Business               Opened Home Décor s tore                                 2
  Oct-21        Corners tone Restaurant     797 Fa rmington Avenue     New Business                    New res taurant                                     8
                  Col es Road Brewing       817 Fa rmington Avenue     New Business                        Brewery
  Oct-21             Ka der Insurance              Mi l l Street       New Business                   Ins urance a gency
  Oct-21            Fi tness By Design      848 Fa rmington Avenue      Expa nsion        Rel ocated and grow into 2,200 s quare feet                      1
  Nov-21     Lou & Mos Sa ndwich Shoppe 196 Berl in Turnpike           New Business                   Sa ndwich Shoppe                                     4
  Nov-21           The Fresh Monkee           196 Berl in Turnpike      Expa nsion                Grew wi thin same complex                                2
                                             120 Webster Squsare
  Dec-21
            Somewhere Over the Spectrum               Roa d            New Business             Opened on Web. Square Road                                 7
Future Considerations & Questions
 • Are there any other economic development tools available to position Berlin for future
   economic success?

 • In what locations should these efforts be focused?

 • What uses should be targeted in future development?

 • Does zoning match with goals/vision of future development areas?

 • Is more flexibility need in uses in existing commercial and industrial zones either through
   zoning map changes or amendments that allow added uses?

 • Is the BTD zone effective? Are there changes to the zone that are needed?

 • Are there other areas to consider for mixed-use?

 • Should an increase in residential density be allowed in the Kensington Village Core area 2?
Online Survey
• We will launch the POCD
  survey this month,
  following closure of the
  Housing Plan survey.
Draft Vision Statement
Berlin is a community with a small-town feel founded in a rural and
historically agrarian landscape that benefits from its location at the center
of the state. The town has a rich history, strong community, and provides a
peaceful atmosphere for its residents. Berlin will continue to grow, but in a
sustainable manner and without compromising the town’s natural resources
or outgrowing its ability to provide high-quality services to its residents.
Strong connections to the region and within town are highly valued by the
community for all modes of travel. Berlin will balance growth against
preservation of its historic landscape and village centers. The town’s village
centers, and farmland are important to the history and identity of Berlin;
protecting and improving areas such as Kensington Center will remain a
priority for the town.
Next Steps
• Launch Community engagement efforts
   • Develop press release and social media content
   • Launch online survey mid-February
   • Develop list of key stakeholders for interviews/focus group
     meetings. Continue to coordinate mapping with NEGEO
• Continue economic development and housing research
• Prepare housing research for next meeting
Meeting Topics through April

• February: Economic Development, Housing and
  Affordable Housing
• March: Facilities and Infrastructure
• April: Mobility

• Discussion and updates on Community Engagement
  progress will be conducted at all meetings
Next Meeting
• Housing: Thursday
  February 24th at 6:00 pm.
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